French Tax Lawyer – Former Tax Inspector

French Tax Lawyer – Former Tax Inspector

FOREIGN INVESTORS STILL LURED BY THE FRENCH RIVIERA

The French Riviera saw an increase in its attractiveness for foreign investors still lured by the Cote d’Azur from abroad. With reduced prices, a weak euro and recent changes to taxation, the current market makes things much easier for foreign investors.

The French Riviera is one of the most attractive destinations in the world for second homes.
As in other regions of France, real estate prices in the French Riviera have declined and the market now belongs to the buyers. Latest assessments in the region point to a downward trend. However, the housing market has not experienced the same shock as that in Paris between 2009 and 2011, and the properties currently seem in better position than in the capital.
The number of sales of properties priced more than € 3 million has dropped by 44% in the region between 2007 and 2013. Cap Ferrat and St Tropez observed the largest decline: 69% and 54% respectively. Although the number of transactions has fallen, buyers of the most beautiful properties in the region tend to keep them for long periods since real property ownership in the French Rivera is still considered for long-term investment planning.

What distinguishes the French Riviera from other areas is that the supply is extremely limited in the most sought after locations. At Saint-Jean-Cap-Ferrat, there are only about 500 properties, and their number does not increase much from one year to another.

Cap d’Ail, Beausoleil and Roquebrune-Cap-Martin, next to Monaco, have benefited from the increased activity in the Principality. Properties are much cheaper here than in Monaco and this area is very well known from buyers who want quick access to the city state at a reduced price.

In the years 2011 – 2014, British buyers accounted for 34% of all buyers in the French Riviera. Although the market remains cautious, tax benefits for non-resident buyers, and the weak euro, promote the acquisition of a property in France.

Russian buyers have always been active in the property market of the French Riviera, accounting for 30% of all buyers between 2011 and 2014. Because of economic sanctions, their activity has slowed considerably.

The exchange rate of foreign currencies again the euro is also interesting. Acquisitions in US dollars for example are far less expensive today. For example sales of € 2 million were valued $ 2.18m in June 2015, compared with $ 2,72M the previous year. That amounts to a 22% reduction